Trump Dinner: Token Appreciation or Be Played for Suckers?

Recently, the official TRUMP Token announced that it will hold the "TRUMP DINNER" banquet in Washington on May 22. The event will invite 220 Token holders to participate, with the first 25 enjoying a private VIP reception with Trump and a tour of the White House. Trump will attend as a guest and will not be raising funds.

This news brings to mind the large-scale unlocking event of the TRUMP Token on April 18. At that time, 40 million tokens were unlocked, worth about $300 million, accounting for 20% of the circulating supply. Some couldn't help but question: is this a gesture of gratitude, or is there another motive?

After the dinner announcement, the price of TRUMP skyrocketed, reaching a high of $14.37. As of the time of publication, the quote is $12.37, an increase of over 33%.

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Investors' Reactions

After the news was released, the market experienced significant changes. An investor spent 5 million USDC to purchase 407,467 TRUMP at an average price of $12.27. Then, within half an hour, he sold all of them, making a profit of $731,800.

Another long-term liquidity provider withdrew liquidity from two wallets, obtaining 211,977 TRUMP and 18,376 SOL, with a total value of 5.52 million USD. Both wallets have now entered the top 220 holders, with a chance to receive an invitation to the dinner. The investor initially bought 332,424 TRUMP at a price of 2.41 USD, which had once been worth over 24 million USD at its peak.

However, not all investors are so lucky. One investor liquidated their position about 20 hours before the news was released, making a profit of only $483,000. If they had held on until after the news was announced, the theoretical profit could have reached $4.28 million.

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The Future of TRUMP Token

In the long run, the performance of TRUMP Token has been disappointing. It soared to over $75 on its first day of trading, but quickly fell back. Investors noticed that the Token is highly concentrated and has a short exercise period, leading to a rapid price correction. Three days after its launch, the market capitalization has already plummeted by over 50%.

Considering that 80% of the supply is held by entities controlled by Trump, the current market value of $2.6 billion seems unreasonable. Although the dinner event stimulated short-term trading volume, the long-term price trend remains difficult to be optimistic about. Unless concerns over the unlocking of tokens can be alleviated, it will be hard to reverse the ongoing sluggish situation.

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The Rise of NFTs Again?

The dinner event not only affected the TRUMP Token but may also reignite interest in Trump-themed NFTs. The event terms indicate that if Trump is absent or the dinner is canceled, eligible holders will receive a limited edition NFT as compensation.

Trump had previously attempted to promote NFTs. On May 8, 2024, he held an NFT dinner in Florida, inviting buyers who purchased at least 47 "MugShot Edition" NFTs. The series consists of 100,000 pieces, priced at $99 each.

The earliest traceable event dates back to December 2022, when Trump issued 45,000 NFT cards featuring images of superheroes, astronauts, and more. These NFTs sold out within 12 hours. In March 2023, when Trump was indicted, the price of the NFTs skyrocketed to nearly $1,700.

In April 2023, the Trump team launched the second NFT series, selling out in 5 hours with a revenue of 4.6 million dollars.

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Summary

Trump appears to be simultaneously operating the TRUMP Token and NFT projects. Regardless of whether these projects can sustain value appreciation, the short-term price increase and exposure have already achieved the expected effect. However, investors still need to be cautious and remain alert to potential risks.